HARRISBURG, Pa. (AP) – Two financially troubled sellers of long-term care insurance policies are going under, and state guaranty associations will take over claims payments for tens of thousands of policyholders nationwide.
The Pennsylvania Insurance Department said Wednesday a state court approved its request to liquidate Penn Treaty Network America Insurance Co. and American Network Insurance Co.
A department spokesman says the companies’ liability is projected at $4.6 billion, versus assets of about $500 million.
The department says policyholders should continue paying premiums or coverage will lapse. About $3.3 billion in claims are to be covered by the state guaranty association system , and individual payouts could be subject to a $300,000 cap.
The companies have 76,000 policyholders nationwide.
Consumers can contact the department’s Bureau of Consumer Services at http://www.insurance.pa.gov or 1-877-881-6388.